SolarCity briefly pops as Baird analysts release bullish note

SolarCity employees prepare to install solar panels on the roof of a home in Kendall Park, New Jersey.

Shares of SolarCity briefly popped more than 3 percent Thursday as analysts at R. W. Baird said they saw long-term upside for the stock.

SolarCity shares later reversed and ended the day down about 1.8 percent.

Baird upgraded the solar power firm to "outperform" from "neutral," citing SolarCity's announcements of financing transactions, "which should help the balance sheet/liquidity argument, and we expect further project cost reductions to open new markets."

"We believe negative sentiment is overdone on one of the leading U.S. rooftop installer, and think shares are attractive at current levels," Baird said in a Thursday note to clients.

"Although bears have focused on NV Energy's decision to significantly reduce net metering benefits, NV may grandfather existing solar customers into the old NEM program, and the recent proposal by Solar Progress Partnership in New York provides a framework for long-term solar growth in NY."

SolarCity's stock has struggled mightily this year, falling more than 55 percent.